The uniform regulations of the T-MEC will regulate key aspects of the trade agreement that enters into force on July 1
The Government of Mexico concluded this Wednesday the negotiation of the uniform regulations, one of the main pending for the entry into force of the new trade agreement of Mexico, the United States and Canada (T-MEC) 1st of July.
These regulations, referred to in article 5.16 of the T-MEC, will regulate key aspects of the trade agreement, such as the rules of origin, origin procedures, textile goods and customs administration, said the Ministry of Economy (SE) in a statement.
“They aim to provide practical and useful guidance for better compliance with the rules and procedures of the treaty in the aforementioned chapters and will provide legal certainty and clarity in the application of the provisions of the T-MEC,” said the agency.
Clarifying uniform regulations was one of the main demands of Mexican industrialists, who have asked for more time to adapt their production to the demands of the T-MEC, which will replace the still in force North American Free Trade Agreement (NAFTA).
In particular, they have highlighted the challenge of complying with the rules of origin in the Automotive industryBecause the T-MEC increases the mandatory regional content of automobiles to 75 percent, which in NAFTA was 62.5 percent.
The pertinent aspects of “automotive goods” are included in Part VI of the origin regulations, the content of which was published in English by the SE on Wednesday.
This stipulates a calendar that will allow gradual increases in the regional content of vehicles from July 1 with a deadline of 2023 for some auto parts and 2027 for others.
Section 12 of Part VI also defines “assembly plants with a salary that meets the requirements”, which are those that pay $ 16 an hour in the United States, $ 20.88 in Canada and 294.22 pesos in Mexico.
The salary increase and respect for labor rights It was one of the main demands of the North American unions when renegotiating the treaty.
Auto parts and vehicles established in these rules that do not meet the requirements will pay duty.
To fine-tune the regulations, the Undersecretariat for Foreign Trade “maintained close coordination at all times” with the Ministry of Finance and Public Credit (SHCP), the Tax Administration Service (SAT) and representatives of business chambers.
For now, the texts are published “for informational purposes,” clarified the SE, noting that they will be subject to legal verification in Spanish, French and English by the members of the T-MEC.
With information from EFE